Monetta Financial Services Inc. Takes Position in International Business Machines Corporation $IBM

Key Points

• Monetta Financial Services acquired 3,500 IBM shares during the second quarter, valued at approximately $984,000. Institutional investors collectively own 58.96% of IBM.
• IBM reported quarterly revenue of $17.16 billion, up 1.1% year over year, while earnings of $2.93 per share matched analyst estimates. The company also declared a quarterly dividend of $1.69, representing a 2.9% annualized yield.
• Analysts maintain a consensus “Moderate Buy” rating with an average price target of $265.90, although several firms recently lowered their targets. Shares opened at $234, below their 50-day and 200-day moving averages, while an executive’s sale of 25,000 shares and a law-firm investigation add potential risks.

Monetta Financial Services Inc. acquired a new stake in shares of International Business Machines Corporation (NYSE:IBM - Free Report) during the second quarter, according to its most recent filing with the SEC. The fund acquired 3,500 shares of the technology company's stock, valued at approximately $984,000.

A number of other institutional investors have also added to or reduced their stakes in IBM. Basepoint Wealth LLC purchased a new position in International Business Machines during the 4th quarter valued at about $25,000. Portus Wealth Advisors LLC purchased a new stake in shares of International Business Machines in the first quarter worth about $26,000. Harborfront Financial Group LLC bought a new position in shares of International Business Machines in the second quarter valued at approximately $27,000. Cornerstone Financial Management LLC purchased a new position in International Business Machines during the fourth quarter valued at approximately $28,000. Finally, SWAN Capital LLC purchased a new position in International Business Machines during the third quarter valued at approximately $28,000. Hedge funds and other institutional investors own 58.96% of the company's stock.

Key Headlines Impacting International Business Machines

Here are the key news stories impacting International Business Machines this week:

• Positive Sentiment: Quantum-computing advances support IBM’s growth narrative. IBM reportedly achieved a 25-fold throughput improvement, reinforcing its position in quantum hardware and software and adding to investor enthusiasm around emerging technology opportunities. Quantum Computing News: IBM Hits 25x Throughput Gain, RGTI Shows Up to 100x Speedup
• Positive Sentiment: Valuation and shareholder returns are attracting buyers. One analysis says IBM may trade below estimates of intrinsic value based on discounted cash flow, earnings and cash-flow multiples. Its long-term return, sizable dividend and reported $1.69-per-share distribution strengthen the income and value case. IBM Stock Could Be Below Fair Value Despite Cautious Broader Checks
• Positive Sentiment: AI and strategic investments broaden IBM’s growth prospects. IBM remains a favored long-term AI stock among retail investors, while IBM Ventures’ investment in physics-acceleration company BQP provides additional exposure to advanced computing. IBM Ventures Backs Physics Acceleration Firm BQP
• Neutral Sentiment: IBM’s latest trading-session advance reflected broader market strength, but the company’s shares remain below both their 50-day and 200-day moving averages, indicating that technical momentum is still mixed. IBM Beats Stock Market Upswing
• Negative Sentiment: A law-firm investigation adds headline and litigation risk. Bleichmar Fonti & Auld announced an investigation into potential misrepresentations concerning IBM’s business deal pace. The inquiry does not establish wrongdoing, but it could pressure the stock if additional claims or weak bookings emerge. IBM Under Investigation for Securities Fraud

Insider Activity

In related news, SVP Robert Thomas sold 25,000 shares of the stock in a transaction on Wednesday, August 26th. The shares were sold at an average price of $230.32, for a total transaction of $5,758,000.00. Following the transaction, the senior vice president owned 47,800 shares of the company's stock, valued at approximately $11,009,296. This trade represents a 34.34% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 0.27% of the company's stock.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on IBM. Jefferies Financial Group lowered their target price on shares of International Business Machines from $320.00 to $260.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. BMO Capital Markets decreased their price target on shares of International Business Machines from $270.00 to $230.00 and set a "market perform" rating on the stock in a report on Thursday, July 23rd. Piper Sandler upgraded International Business Machines to an "overweight" rating in a research report on Tuesday, June 23rd. Craig Hallum started coverage on International Business Machines in a research report on Wednesday, August 19th. They issued a "buy" rating on the stock. Finally, Weiss Ratings lowered International Business Machines from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, June 24th. Sixteen analysts have rated the stock with a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, International Business Machines presently has a consensus rating of "Moderate Buy" and an average target price of $265.90.

International Business Machines Stock Performance

Shares of NYSE IBM opened at $234.00 on Friday. The stock has a market cap of $220.46 billion, a price-to-earnings ratio of 20.76, a P/E/G ratio of 2.21 and a beta of 0.71. The company has a current ratio of 0.79, a quick ratio of 0.74 and a debt-to-equity ratio of 1.63. International Business Machines Corporation has a 1-year low of $199.19 and a 1-year high of $332.46. The stock's 50-day moving average is $242.40 and its 200 day moving average is $247.21.

International Business Machines (NYSE:IBM - Get Free Report) last released its earnings results on Wednesday, July 22nd. The technology company reported $2.93 earnings per share for the quarter, hitting analysts' consensus estimates of $2.93. International Business Machines had a return on equity of 35.65% and a net margin of 15.52%.The company had revenue of $17.16 billion during the quarter, compared to the consensus estimate of $17.46 billion. During the same quarter in the previous year, the company posted $2.80 EPS. International Business Machines's quarterly revenue was up 1.1% compared to the same quarter last year. On average, sell-side analysts anticipate that International Business Machines Corporation will post 12.33 EPS for the current fiscal year.

International Business Machines Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, September 10th. Stockholders of record on Monday, August 10th will be paid a $1.69 dividend. The ex-dividend date of this dividend is Monday, August 10th. This represents a $6.76 dividend on an annualized basis and a dividend yield of 2.9%. International Business Machines's dividend payout ratio is 59.98%.

About International Business Machines

International Business Machines Corporation (IBM) is a global technology and consulting company headquartered in Armonk, New York. Founded in 1911 as the Computing-Tabulating-Recording Company (CTR) and renamed IBM in 1924, the company has evolved from early electromechanical machines to a diversified technology provider serving enterprises and governments worldwide. IBM is publicly traded on the New York Stock Exchange under the ticker symbol IBM.

IBM's principal businesses encompass cloud computing and software, infrastructure and systems, consulting and technology services, and research and development.

Want to see what other hedge funds are holding IBM? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for International Business Machines Corporation (NYSE:IBM - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source